La Finca Interacviva-Arachna Med is a licensed cultivator, producer, distributor, and seller of cannabis products in Colombia with export abilities into global markets.
VANCOUVER, British Columbia, Jan. 09, 2019 (GLOBE NEWSWIRE) — Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA:CWAA) (the “Company” or “Chemesis”) is pleased to announce that it has entered into a definitive agreement for the acquisition of 100% of La Finca Interacviva-Arachna Med SAS (“La Finca”), an integrated cannabis company that has been operational since late 2017 and which has CAD $2,300,000 in working capital on hand.
Chemesis believes the emerging Latin American market is poised for major growth. The LATAM Cannabis Report estimates the region will have a market value of US $4.2 billion by the year 2028. Furthermore, the report expects Colombia to have a market value of US $664 million in the same time frame. Colombia’s large market value is attributed to its large population, cost efficiency, and free trade agreements with countries around the world. 1
“With the completion of this acquisition, Chemesis will significantly increase its footprint in Latin America,” said Edgar Montero, CEO of Chemesis. “The Company believes its exposure in Latin America will not only provide access to more opportunities in the region, but internationally as well. La Finca is ramping up as planned and has submitted all necessary documents to the Ministry of Justice to expand its cultivation area to 1,060 acres.”
La Finca has made significant headway in its operations and regulatory approvals since the Company announced its intention to acquire 100% of the Colombia based company. In addition to the previously announced partnerships with Universidad Nacional de Colombia and Universidad Distrital Francisco José de Caldas, La Finca is also in discussion to partner with two other major Universities in Colombia that have been authorized by the Colombian Government to conduct cannabis research, develop seed strains, and other agronomical research.
La Finca is also in conversations with a major international lab that prepares compounding formulations for international markets and currently has operations in Colombia and 34 other countries.
To complete the acquisition, the Company is issuing CDN $8,000,000 in stock at a deemed price of CDN $1.25 per share and is agreeing to pay a further CDN $5,500,000 within the next 24 months. The stock issued is subject to 36-month contractual escrow agreement.
[heading h=”6″]On behalf of the board of directors[/heading]
CEO and Director
[heading h=”3″]About Chemesis International Inc.[/heading]
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within California, Puerto Rico, and finalizing an acquisition in Colombia.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
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Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws relating to statements regarding the Company’s business, products and future the Company’s business, its product offerings and plans for sales and marketing. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company’s products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.
The CSE has not reviewed, approved or disapproved the content of this press release